LONDON: Wholesale natural gas prices in Britain dropped on Tuesday morning due to a return to production of North Sea gas fields that went into an unplanned outage the previous day.
Gas prices for delivery within the day were trading at 36.25 pence per therm at 0820 GMT on Tuesday, down 1.6 pence since their last close, and prices for delivery the next day were down 1.05 pence to 36.10 pence a therm.
Traders said the price falls were a result of an oversupplied system following Wednesday's outage.
"Prompt prices have opened softer this morning on the back of a long system and the return of St Fergus," one gas trader said.
Production at the St Fergus natural gas terminal in Britain restarted on Monday afternoon following an unplanned offshore outage which resulted in reduced production and pushed up prices in early Monday trading.
The lower prices also fed into the curve, where contracts for delivery next winter were down 0.8 pence to 56.20 pence per therm.
Research firm Energy Aspects said that at it saw support for contracts around a price of 35 pence per therm as many utilities would switch from coal to gas use for power generation at that level, lifting gas demand.
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